Blog > Oil and Energy > ReneSola (SOL) up 6% in first hour of trading
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ReneSola (SOL) up 6% in first hour of trading

Posted August 20, 2008

"It hit a $17.04 low yesterday. But today, ReneSola is back up again. It’s pushed past the $18 market and is up 4.12% after only two hours in the trading day." — Stephanie Grimmett

by Stephanie Grimmett

Baltimore — (TFN):  As J. Christoph Amberger predicted, ReneSola (SOL:NYSE) sold off yesterday, with the announcement of tremendous earnings and the expectation of strong growth in coming quarters.

We took our profits off the table when the stock fell below our stop loss of $18. It hit a $17.04 low yesterday. But today, the solar cell company is back up again. It’s pushed past the $18 market and is up 4.12% after only two hours in the trading day.

The paranoid funk seems to be over. And investors are buying into the stock again after taking their profits off the table all day on Friday and Monday.

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Why did a good stock with fantastic quarterly results take a dive? Because the markets are depressed and investors are trembling in fear.

Everybody knew ReneSola was going to have good quarterly results. And when the company set the date for its quarterly announcement, investors started piling in, and SOL started to climb.

In a normal market, investors would have stayed in until a few days or weeks after the announcement before taking profits. But this is where the fear and paranoia come in. Investors are too scared and impatient to watch a stock build up very high before taking their money out.

Institutional investors saw SOL hit 25% and immediately sold their shares. And individual investors followed suit.

Investors are fickle and impulsive in a healthy market, and when fear starts to weight more heavily on their minds than greed does, they turn twitchy and insecure.

If you’d like to get back into ReneSola, wait until it falls below $18, and if you’re a long-term investor, expect a bumpy ride.

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Posted by Stephanie Grimmett · Filed Under Oil and Energy 

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